HOUSTON--(BUSINESS WIRE)--July 29, 1999--BMC Software Inc.
(Nasdaq:BMCS.O) today announced financial results for its first quarter
of fiscal 2000, ended June 30, 1999. Very strong growth in both
mainframe and distributed systems license revenues as well as strong
growth in maintenance and services revenues yielded the eighth
consecutive record breaking quarter. On a geographic basis, growth was
very strong in North America and in Asia Pacific. The company also
closed its acquisition of New Dimension Software Ltd. in the quarter,
whose financial results are included in the company's financial
results beginning April 15, 1999.
Total revenues for the first quarter of fiscal 2000 increased 43
percent to $400.7 million from $279.3 million in the same quarter of
fiscal 1999. In the quarter, net earnings and diluted earnings per
share, excluding merger related costs, acquired research and
development costs, and amortization of goodwill and intangible assets
arising from purchase accounting, increased 34 percent to $105.3
million and 31 percent to $.42, respectively, compared to net earnings
of $78.5 million and diluted earnings per share of $.32 in the
year-ago quarter. Net earnings and diluted earnings per share
reflecting these costs and charges were $16.4 million and $.07 for the
first quarter of fiscal 2000, as compared to $67.2 million and $.27 in
the first quarter of fiscal 1999, respectively.
"Our first quarter for fiscal 2000 was the one in which BMC
Software completed its transition into a top-tier systems software
provider. Following the merger with Boole & Babbage in March 1999, we
successfully completed the acquisition of New Dimension Software. We
have spent the quarter bringing the three companies together into what
we believe is a powerful, integrated company," said Max Watson,
chairman, president and chief executive officer of BMC Software. "We
kicked off the new fiscal year as a new company with a new
organizational structure, a new corporate identity and a new message
to the industry -- Assuring Business Availability. While we were doing
this, we did not forget about execution. In the quarter we had strong
growth across both mainframe and distributed systems, and I am
particularly pleased with the strong showing out of the gate from our
Professional Services organization."
Total license revenue growth was 47 percent for the first quarter
of fiscal 2000, with North American license revenues growing 63
percent and international license revenues growing 17 percent.
Maintenance and services revenues increased 36 percent from the first
quarter of fiscal 1999. Total mainframe revenues increased 42 percent
over the first quarter of fiscal 1999 and total distributed systems
revenues increased 63 percent over the first quarter of fiscal 1999.
First Quarter Highlights
-- Completed the acquisition of New Dimension Software, finalizing
the third strategic acquisition in the last 18 months that has
placed BMC Software in the industry's top-tier enterprise systems
management vendors delivering rapid business value.
-- Realigned all product organizations into five strategic lines of
business, capitalizing on the synergies of the new combined
organization and empowering employees with a more customer- and
market-focused management structure.
-- Launched the most far-reaching global marketing campaign in the
company's history and introduced a new corporate identity and
strategy going forward.
-- Amazon.com selected BMC Software's PATROL and BEST/1 product
lines to help assure around-the-clock application availability
and business continuity to its 8.4 million customers.
-- Entered into agreement with leading application service
provider/Web hosting supplier NaviSite Inc., reinforcing the
company's commitment to providing end-to-end management of
Internet applications.
-- Advanced technology and marketing initiatives with Compaq,
Hewlett-Packard, Hitachi, SAP, Seimens, Sun Microsystems and
other partners across the industry.
-- Announced PATROL 3.3, with a range of new features that further
enhance the availability, security and installation and
deployment processes for mission-critical applications and data
across enterprise environments.
About BMC Software
BMC Software is the world's leading provider of management
solutions that ensure the availability, performance and recovery of
companies' business-critical applications. We call this "application
service assurance," and it means that the applications companies and
their customers rely on most stay up and running, around the clock.
For more than 18 years, the world's leading companies have relied on
BMC Software.
BMC Software is among the world's largest independent software
vendors, a Forbes 500 company and is a member of the S&P 500, with
fiscal year 1999 revenues exceeding $1.3 billion. The company is
headquartered in Houston, with offices worldwide. For more
information, visit BMC Software's Web site at bmc.com, or
please call 800/841-2031 or 713/918-8800.
This news release contains both historical information and
forward-looking information. Numerous important factors affect the
company's operating results and could cause the company's actual
results to differ materially from the results indicated by this press
release or by any other forward looking statements made by, or on
behalf of, the company, and there can be no assurance that future
results will meet expectations, estimates or projections. These
factors include, but are not limited to, the following: 1) BMC
Software's revenues and earnings are subject to a number of factors,
including the significant percentage of quarterly sales typically
closed at the end of each quarter, that make estimation of operating
results prior to the end of a quarter extremely uncertain; 2) BMC
Software's acquisitions of Boole & Babbage Inc. in March 1999 and New
Dimension Software Ltd. in April 1999 and the high degree of
difficulty of integrating different software products and technologies
and the general risks associated with mergers of high technology
companies, including the potential loss of key personnel and cultural
conflicts; 3) competition for BMC Software's products is increasing
for both the open systems and the mainframe database utility products;
4) international results have been volatile over the last two years;
5) BMC Software continues to increasingly depend on large enterprise
license transactions as an integral part of its core mainframe
business; 6) the uncertainties of whether new software products and
product strategies will be successful, and 7) the additional risks and
important factors described in the company's quarterly reports on Form
10-Q and in its Annual Report to Stockholders on Form 10-K for the
fiscal year ended March 31, 1999 and other filings with the SEC.
Note to interested parties: BMC Software has scheduled a
conference call for 4:00 p.m. CST today to discuss the first quarter
results for fiscal 2000. Interested parties may participate by calling
847/619-6057. You may also access the conference call over the
Internet through Vcall at vcall.com. To listen to the live
call, please go to the Web site at least 15 minutes early to register,
download and install any necessary audio software.
BMC Software, the BMC Software logo, Assuring Business
Availability, BGS Systems, Boole & Babbage and New Dimension Software
are registered trademarks or trademarks of BMC Software, Inc. in the
USA and in other select countries. Other third-party logos and
product/trade names are registered trademarks or trademarks of their
respective companies.
*T
BMC SOFTWARE INC. AND SUBSIDIARIES
STATEMENTS OF EARNINGS
(Unaudited)
Three Months Ended
June 30,
Fiscal Fiscal %
1999 2000 Increase
---- ----
(In millions, except
per share data)
Revenues:
Licenses $190.4 $279.8 47%
Maintenance and services 88.9 120.9 36%
------ ------
Total revenues 279.3 400.7 43%
Selling and
marketing expenses 89.8 140.3 56%
Research and
development expenses 40.2 57.6 43%
Cost of maintenance services
and product licenses 31.4 37.1 18%
General and
administrative expenses 20.7 34.3 66%
Merger related costs -- 12.5 N/A
Acquired research
& development costs 17.3 80.8 367%
Amortization of
goodwill and intangibles 1.1 30.4 2,664%
------ ------
Operating income 78.8 7.7 (90%)
Other income 13.5 10.9 (19%)
------ ------
Earnings before
income taxes 92.3 18.6 (80%)
Income taxes 25.1 2.2 (91%)
------ ------ ------
Net earnings $67.2 $16.4 (76%)
====== ======
Diluted earnings per share $0.27 $0.07 (74%)
====== ======
Shares used in
computing diluted
earnings per share 248.2 249.8 1%
====== ======
BMC SOFTWARE INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
March 31, June 30,
1999 1999
---- ----
(Unaudited)
(In millions)
ASSETS
Current assets:
Cash and cash equivalents $347.9 $313.1
Investment securities 106.3 97.7
Trade receivables 359.0 382.5
Prepaid expenses and other 60.2 72.9
------ ------
Total current assets 873.4 866.2
Property and equipment, net 244.4 265.8
Software development costs, net 110.1 121.3
Purchased software, net 32.8 153.2
Finance receivables 224.0 174.9
Investment securities 750.4 734.8
Goodwill 2.0 415.4
Deferred charges and other assets 45.6 71.8
-------- -------- $2,282.7 $2,803.4
======== ========
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable $27.3 $31.9
Accrued liabilities and other 216.3 180.9
Current portion of deferred revenue 411.9 418.8
Short-term debt -- 485.0
------ ------
Total current liabilities 655.5 1,116.6
Deferred revenue and other 296.8 324.4
------ ------
Total liabilities 952.3 1,441.0
Stockholders' equity:
Paid-in capital 184.2 213.4
Retained earnings 1,143.1 1,159.5
Other stockholders' equity 3.1 (10.5)
------ ------
Total stockholders' equity 1,330.4 1,362.4
------- -------
$2,282.7 $2,803.4
======== ========
Quarter Ended June 30, 1999
$'s in millions, except per share amounts
Special Items
-------------------------------------------------------
Operations Amortization of
(before Goodwill
Special Acquired Merger and Other Net, as
Items) R&D Expenses Intangibles reported
-------- ---------- -------- ------------ --------
Earnings before
income taxes $142.3 $(80.8) $(12.5) $(30.4) $18.6
Income taxes (37.0) 24.2 1.4 9.2 (2.2)
------- ------- ------- ------- ------
Net earnings $105.3 $(56.6) $(11.1) $(21.2) $16.4
======= ======= ======= ======= ======
Diluted earnings
per share $0.42 $(0.23) $(0.04) $(0.08) $0.07
======= ======== ======== ======== ======
*T
--30--MJB/ho* EB/ho
CONTACT: BMC Software, Houston
Investor Relations Contact: John Cox, 713/918-4291
john_cox@bmc.com
or
Media Relations Contact: Dan D'Armond, 713/918-2372 |
